Universal Display (OLED) AI Stock Analysis

• Market Cap: $6.98B
• Dividend Yield: 1.4%
• Average Volume (3M): 454.38K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.71
• Revenue Growth: 6.23%
• EPS Growth: 10.12%
• Country: US
• Employees: 468
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.92
• Shares Outstanding: 47,534,172
• 10 Day Avg. Volume: 392,758
• 30 Day Avg. Volume: 454,380
• PEG Ratio: 3.24
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 10.73
• P/FCF Ratio: 32.93
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $134.00 ▼(-9.02% Downside)

Universal Display's strong financial performance and strategic growth initiatives are offset by bearish technical indicators and a high valuation. The mixed sentiment from the earnings call, with revenue and profit declines, further tempers the outlook. The company's position in the growing OLED market and its solid financial foundation are positive, but current challenges and market conditions present risks.

Positive Factors

Strong Financial Health

The company's low debt-to-equity ratio and high ROE indicate robust financial stability, providing a solid foundation for long-term growth and resilience.

Strategic Acquisition

Acquiring OLED patent assets enhances UDC's technology portfolio, potentially accelerating innovation and strengthening competitive positioning in the OLED market.

Expansion into New Markets

Expanding into new markets such as semiconductors and pharmaceuticals diversifies revenue streams and positions UDC for future growth opportunities.

Negative Factors

Revenue and Profit Decline

The decline in revenue and profit indicates potential challenges in maintaining growth momentum, which could impact long-term financial performance.

Decrease in Royalty and Licensing Fees

A significant drop in royalty and licensing fees may affect future revenue streams, highlighting potential issues in monetizing intellectual property.

Operating Margin Reduction

The reduction in operating margins reflects increased cost pressures, which could challenge profitability and require strategic adjustments to maintain efficiency.

Universal Display Business Overview & Revenue Model

Company Description

Universal Display Corporation (UDC) is a leading innovator in the field of organic light-emitting diode (OLED) technology, specializing in the development and commercialization of OLED materials and technologies for display and lighting applications. The company operates primarily in the consumer electronics, automotive, and lighting sectors, providing high-performance OLED materials that enable vibrant displays for smartphones, televisions, and other electronic devices. UDC's core offerings include phosphorescent OLED materials, which enhance color quality and energy efficiency in OLED displays.

How the Company Makes Money

Universal Display generates revenue primarily through the sale of its proprietary OLED materials and technologies to manufacturers of display panels and lighting products. The company's revenue model is based on licensing agreements, where it licenses its patented technologies and materials to various industry partners, including major electronics firms. Additionally, UDC earns income from the sale of its phosphorescent OLED materials, which are critical for producing high-quality displays. The company's partnerships with leading display manufacturers, such as Samsung and LG, significantly contribute to its earnings, as these companies rely on UDC's advanced materials to create competitive OLED products in the marketplace.

Universal Display Financial Statement Overview

Summary

Universal Display demonstrates strong financial health with high profitability, low leverage, and effective cash management. The company maintains a very low debt-to-equity ratio and a healthy ROE. However, the decline in free cash flow growth and slight margin pressures warrant monitoring.

Income Statement

Universal Display shows strong profitability with a high gross profit margin of 76.55% and a net profit margin of 36.94% in TTM. Revenue growth is modest at 2.05% TTM, indicating stable growth. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is healthy at 14.87%, showcasing effective use of equity. The equity ratio is strong, suggesting a solid financial foundation with significant equity backing its assets.

Cash Flow

Operating cash flow to net income ratio is strong at 1.57, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 12.48% TTM, which could be a concern if it continues. The free cash flow to net income ratio remains solid at 0.73, suggesting effective cash management despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	639.98M	647.68M	576.43M	616.62M	553.52M	428.87M
Gross Profit	489.80M	499.22M	441.05M	488.72M	438.53M	343.39M
EBITDA	267.33M	282.94M	260.59M	309.38M	269.61M	194.71M
Net Income	221.68M	222.08M	203.01M	210.06M	184.21M	133.37M
Balance Sheet
Total Assets	1.95B	1.83B	1.67B	1.53B	1.47B	1.27B
Cash, Cash Equivalents and Short-Term Investments	602.98M	492.67M	514.12M	577.77M	663.19M	730.01M
Total Debt	0.00	19.14M	22.86M	29.04M	27.26M	6.88M
Total Liabilities	202.65M	215.81M	221.74M	257.45M	367.00M	356.51M
Stockholders Equity	1.74B	1.62B	1.45B	1.28B	1.10B	912.71M
Cash Flow
Free Cash Flow	161.33M	211.10M	28.42M	79.61M	147.55M	120.74M
Operating Cash Flow	214.39M	253.74M	154.78M	126.81M	191.10M	148.79M
Investing Cash Flow	-82.25M	-164.41M	-83.29M	-280.74M	-457.75M	391.26M
Financing Cash Flow	-90.10M	-82.33M	-72.93M	-64.64M	-51.37M	-41.66M

Universal Display Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 147.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Negative. The current price of 147.28 is above the 20-day moving average (MA) of 145.39, above the 50-day MA of 143.28, and above the 200-day MA of 143.91, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 31.39 is Neutral, neither overbought nor oversold. The STOCH value of 28.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLED.

Universal Display Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMBS	78 Outperform	$11.69B	50.54	19.66%	―	31.05%	30.35%
LSCC	72 Outperform	$8.64B	317.15	3.86%	―	-12.03%	-80.99%
SMTC	65 Neutral	$6.06B	296.02	11.57%	―	22.22%	―
OLED	64 Neutral	$6.98B	28.64	15.07%	1.40%	6.23%	10.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	61 Neutral	$2.22B	126.12	2.53%	2.30%	10.50%	-52.00%
ALGM	58 Neutral	$5.08B	―	-3.02%	―	-7.23%	-15.69%

Universal Display Corporate Events

Universal Display Corp’s Mixed Earnings Call Insights

Universal Display Corp’s recent earnings call presented a mixed sentiment, highlighting both strategic advancements and financial challenges. The company is poised for future growth with new acquisitions and capacity expansions in the OLED market. However, current financial metrics reveal a decline in revenue, profit, and royalty and licensing fees, indicating some hurdles ahead.

Universal Display Reports Q3 2025 Financial Results

Universal Display Corporation, a leader in the development and commercialization of organic light-emitting diode (OLED) technologies, is renowned for its energy-efficient UniversalPHOLED technology used in displays and lighting applications. In its latest earnings report for the third quarter of 2025, the company reported a decline in total revenue to $139.6 million from $161.6 million in the same period last year, attributed to timing shifts and a one-time adjustment. Material sales revenue slightly decreased to $82.6 million, while revenue from royalty and license fees saw a significant drop to $53.3 million, primarily due to changes in customer mix and adjustments. Despite these challenges, Universal Display maintained a strong gross margin of 75% and announced a fourth-quarter cash dividend of $0.45 per share. Looking ahead, the company remains optimistic about the growth opportunities in the OLED market, focusing on accelerating innovation and expanding its solutions to support broader OLED adoption.

Universal Display Reports Q3 2025 Revenue Decline

Universal Display Corporation announced its financial results for the third quarter of 2025, reporting a decrease in total revenue to $139.6 million from $161.6 million in the same period of 2024. The company attributed this decline to timing shifts, customer pull-ins, and a one-time adjustment. Despite the drop, Universal Display remains optimistic about future growth opportunities in the OLED industry, focusing on innovation and expanding its market applications. The company also revised its 2025 revenue guidance to the lower end of its previous range and declared a fourth-quarter dividend of $0.45 per share.

The most recent analyst rating on (OLED) stock is a Buy with a $173.00 price target. To see the full list of analyst forecasts on Universal Display stock, see the OLED Stock Forecast page.